In the VAT tax return of which reporting period the supplier must reflect the reduction of the tax liability based on the calculation of the adjustment to the tax invoice, which provides for a reduction in the amount of compensation for goods / services, made in the period from February 24, 2022 to May 27, 2022. ERPN a buyer – a VAT payer, who has the opportunity to timely fulfill their tax obligations for its registration?
In accordance with paragraph 192.1 of Art. 192 of the Tax Code of Ukraine of December 2, 2010 № 2755-VI as amended (hereinafter – TCU) if after the supply of goods / services any change in the amount of compensation for their value, including the next supply price review, recalculation in cases of return of goods / services to the person who provided them, or when the supplier returns the amount of prepayment for goods / services, the amount of tax liabilities for the tax credit of the supplier and recipient are subject to appropriate adjustment based on the adjustment to the tax invoice drawn up in the manner prescribed for tax invoices, and registered in the Unified Register of Tax Invoices (hereinafter – ERPN).
The adjustment calculation made by the supplier of goods / services to the tax invoice, which is made on the recipient – taxpayer, is subject to registration in ERPN by the recipient (buyer) of goods / services, if the amount of compensation for goods / services to their supplier is reduced. adjustment to the recipient.
According to p.p. 192.1.1 § 192.1 art. 192 of the TCU, if as a result of such recalculation there is a decrease in the amount of compensation in favor of the taxpayer – the supplier, the supplier accordingly reduces the amount of tax liabilities as a result of the tax period during which such recalculation was made.
The supplier has the right to reduce the amount of tax liabilities only after registration in the ERPN of the calculation of the adjustment to the tax invoice.
Due to the imposition of martial law in Ukraine on February 24, 2022, the registration of tax invoices / adjustment calculations in the ERPN was suspended. Paragraph 32 of approx. 2 sub. 2 chap. XX TCU provides for temporary, for the tax periods February, March, April, May 2022, the formation of a tax credit for transactions for the purchase of goods / services, for which ERPN suppliers have not registered tax invoices and / or calculations of adjustments to them, based on available in payer of primary (settlement) documents drawn up (received) by the taxpayer for transactions for the purchase of goods / services in accordance with the Law of Ukraine “On Accounting and Financial Reporting in Ukraine”.
At the same time, the TCU does not provide for peculiarities to reflect in the VAT tax reporting the adjustment of the supplier’s tax liabilities in the direction of reduction for such tax periods, in the absence of adjustments to the relevant tax invoices registered in ERPN. Therefore, such adjustment is carried out according to the rules specified in p. 192.1.1 § 192.1 art. 192 TCU.
The Law of Ukraine of May 12, 2022 № 2260-IX “On Amendments to the Tax Code of Ukraine and other laws of Ukraine on the peculiarities of tax administration of taxes, fees and single contribution during martial law, state of emergency” (hereinafter – Law № 2260) restored the tax the duty of taxpayers who have the opportunity to perform their tax duties, in particular in terms of compliance with the deadlines for registration of tax invoices and adjustment calculations in the ERPN.
At the same time, in accordance with p. 69.1 item 69 subdivision. 10 chap. XX “Transitional Provisions” of the TCU, such payers are released from liability for late performance of such obligations, the deadline for which falls on the period from February 24, 2022 to the date of entry into force of Law № 2260 (May 27, 2022) subject to registration by such payers tax invoices and adjustment calculations in ERPN until July 15, 2022.
Based on the above, if in the period from February 24, 2022 to May 27, 2022 the goods / services are returned to the person who provided them, or the supplier refunds the amount of prepayment for goods / services, or the amount of compensation for goods / services, including following the supply price review, the reduction of VAT liabilities is reflected by the supplier on the basis of the adjustment calculation registered in ERPN by the buyer – VAT payer, who has the opportunity to timely fulfill their tax obligations to register the adjustment calculation in ERPN:
in case of registration of such calculation of adjustment in ERPN till July 15, 2022 – in the tax declaration with the VAT for the reporting (tax) period in which according to item 192.1 of Art. 192 TCU recalculation was made and such calculation of adjustment was made;
in case of registration of such adjustment calculation in ERPN starting from July 15, 2022 – in the VAT tax return for the reporting (tax) period in which such calculation of adjustment is registered in ERPN.
Source: gov.ua
